\ Increasing water shortage for irrigation is a major constrain to sustainable cotton production. Cotton plant observes reduction in seed cotton yield as well as fibre quality when subjected to drought conditions. Physiological as well as agronomic traits provide useful information for water-deficit tolerance. To find out genotypes having better drought tolerance, 45 genotypes of Gossypium hirsutum L. were studied under two moisture levels i.e. well water and water-deficit stress conditions for two years ( 2013 and 2014). The experiment was conducted using split plot design under RCBD. All the genotypes behaved differently under both control and water-deficit stress. Genotype x Environment Interaction (GEI) of cotton genotypes with two water levels ( Environments) were studied for some selected agro-physiological traits i.e. water potential, osmotic potential, pressure potential and seed cotton yield using AMMI biplot analysis. Results showed that the genotypes VH-291, FH-329, FH-153, IR6, FH-159, VH-289, FH-322, MNH-886, S-15 and FH-207 are either stable or showing positive interaction with water deficit conditions for most of the traits under studied. These genotypes can be used in further breeding program for developing varieties suitable for cultivation under water deficit conditions whereas; NS-131, AA-703 and KZ 191 interacted undesirably with water-deficit stress.